Auto companies are flocking to the Iran Auto Industry International Conference that will be held on November 30, 2013, according to the head of the Iranian auto-parts manufacturers association, Sasan Ghorbani. He said that visas will be made available to participants to meet a spike in demand following a recent Geneva agreement that eased trade restrictions on Iran.
With the lifting of the sanctions, companies eyeing the Iranian auto industry have started signing up for the Saturday conference, including Frenc carmaker Renault SA and Italian group Pininfarina SpA, as listed in the event's Web site.
The participation of these companies brings the promise of investment into the Iranian economy that has been experiencing recession due to sanctions. Their arrival could also add to the post-Geneva optimism evident by the recent rise in the value of the Iranian rial since the accord was signed.
The agreement, which could be replaced with a final deal in six months, will lift some trade sanctions on Iran while restricting the country's nuclear program. This paves way for global companies to penetrate Iran, which has around 77 million people.
According to the United States, the agreement will result to $7 billion in benefits over six months for Iran, which is equal to around 2.7 percent of the Middle East country's output in the period based on World Bank data.
The amount includes $1.5 billion in revenue from the suspension of sanctions on industries like autos and petrochemicals. Since the agreement was signed Nov. 24, the Iranian rial has appreciated almost 4 percent against the US dollar in the unregulated market, according to five money changers interviewed by Bloomberg in Tehran.